Credit Card Debt Settlement - The Pros And Cons Of Debt Settlement

April 30, 2010 - PRLog -- Credit card debt settlements have gained popularity in the present scenario of recession and this has happened because of the fact that majority of the credit organizations are afraid as they cannot recover the money that they have given out as unsecured debt once the debtors go for traditional method of debt eliminations that is, filing for bankruptcy. It is due to this reason that the credit card companies have now become more open to debt settlement negotiations. A debtor may choose to take help from a debt settlement company or may decide to go for negotiations by themselves. There are advantages and disadvantages of credit card debt settlement using settlement companies which are discussed below.

Pros: If a debtor uses a settlement company for elimination of plastic money debt, he or she will always be in an advantageous position. The advantages are:
• The credit organizations give respect to the settlement companies because of their reputation and the professional approach that they have. It is because of this fact that the consumer has a better chance to get a favorable deal.
• The settlement companies know the loophole of the banking system very well and they know exactly how much to push the creditor to get a favorable deal for the debtor.
• The settlement companies have well trained and experienced negotiators who are experts in their fields and are highly professional in their approach and this is what the credit organizations want-a professional negotiator.
• A credit card debt settlement company can eliminate up to 60% of the plastic money debt with a proper negotiation. If the debtor decides to do the task by himself or herself, the results acquired may be only 30%.

Cons: There are not enough of known negative aspects of using a settlement company for credit card debt settlement but still a couple of them can be pointed out.
• A settlement company may turn out to be fraud. It is therefore important that you check the authenticity of the company before you seek help.
• The debtor has to pay a certain amount of fees to the company against the services offered!

Debt settlement is a viable option to filing bankruptcy and is becoming increasingly popular amongst Americans with over $10k in unsecured debt. Creditors are ready to negotiate. You can literally eliminate 50% of your unsecured debt with a settlement. Check out the following link to locate legitimate debt help in your state.

http://www.freedebtsettlementsolutions.com

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FreeDebtSettlementSolutions is a matchmaker in the debt settlement industry. They have paired up thousands of consumers up with debt settlement companies who are most likely to get consumers the best deal.

http://www.freedebtsettlementsolutions.com